China Wishes to Promote New “Silk Road”

KOMPAS/NINA SUSILO

President Joko “Jokowi” Widodo (center) visits the oldest mosque in China, Niujie Mosque, on the sidelines of the Belt and Road Forum for International Cooperation in Beijing on Sunday (14/5). In this historic mosque, the President performed a tahyatal masjid prayer, after which Niujie Mosque cleric Ali Yang Gunjun (left) explained the history of the mosque, which was built in 966.

BEIJING, KOMPAS – The historical memory of a silk road that connected Asia to Europe and Africa is revived through the Belt and Road Summit. In this era, the Silk Road is hoped to boost the spirits of peace, cooperation, openness, inclusivity and prosperity.

In his summit opening speech at the China National Convention Center in Beijing on Sunday (14/5/2017), Chinese President Xi Jinping reminded participants of their forebears’ efforts in establishing an intercontinental trade route known as the Silk Road. President Joko “Jokowi” Widodo, who attended the event, was greeted by President Xi upon arrival. Jokowi then sat beside President Xi and Russian President Vladimir Putin.

“Spanning thousands of miles and years, the ancient Silk Road embodied the spirits of peace and cooperation, openness and inclusiveness, mutual learning and mutual benefit. The Silk Road spirit has become a great heritage of human civilization,” President Xi said as reported by Kompas reporter Nina Susilo in Beijing.

Currently, President Xi said, global developments are in need of new ways that are more inclusive and balanced. The gap between the rich and the poor must be closed.

This was why, in his visits to Indonesia and Kazakhstan in 2013, President Xi proposed a 21^st century maritime silk road and silk road economic belt that was later called the Belt and Road Initiative (BRI). Four years later, more than 100 countries had participated in this initiative.

President Xi added that the BRI would inject 100 billion Chinese yuan (US$14.49 billion) into the Silk Road Fund and encouraged financial institutions to develop businesses in other countries. The China Development Bank (CDB) and the Export-Import Bank of China (Chexim) will prepare funding schemes of 250 billion yuan and 130 billion yuan, respectively, to support infrastructure funding and financial and industry capacity building.

Bilateral meeting

On the sidelines of the Belt and Road Summit on Sunday, a bilateral meeting between representatives of the Indonesian and Chinese governments was held at the Great Hall of the People in Beijing. In the meeting, Jokowi said that he expected stronger collaborations, especially in economic matters.

The Indonesian government offered three megaprojects for China to participate in, namely the integrated economy, connectivity, industry and tourism corridor in North Sumatra; the integrated economy, connectivity, industry and tourism corridor in North Sulawesi; and the integrated economy, harbor, industrial area and hydropower plant in North Kalimantan.

In North Sumatra, the project includes several toll roads from Kuala Tanjung to Sibolga.

“The Netherlands has invested $1.5 billion in the project in Kuala Tanjung. We are now offering a connectivity project involving a railway, a highway and a sea route establishment, as well as a toll road from Kuala Tanjung to Sibolga through Parapat,” said Coordinating Maritime Affairs Minister Luhut Binsar Pandjaitan.

Another investment package on offer is the connectivity development project in Bitung, North Sulawesi. The project comprises an international airport, a seaport and a railway connecting Manado and Bitung in North Sulawesi, and Gorontalo. Connectivity in the region is deemed important as it connects Indonesia to Darwin in Australia (to the south) and to Tokyo in Japan (to the north).

Apart from that, the area has huge potential due to its blooming tourism industry. In the first two months of 2017, the region saw a 400-percent increase in the number of travelers compared to the same period in 2016.

The third package on offer is the development of a microhydro power plant and an aluminum smelter in North Kalimantan. The region, Luhut said, may potentially produce 7,700 megawatts of electricity.

He explained that the projects were expected to resolve infrastructure and equitable development issues in regions outside Java. The government has also offered investment projects to Japanese businesses, and will choose schemes with requirements that will be more beneficial for all Indonesians.

Foreign Minister Retno LP Marsudi added that Indonesia would be open to cooperating with any party under the principles of mutual benefit and mutual respect.